Analysis: Indo-UAE alliance building can be exemplary

Being a trade hub, the UAE enjoys a dynamic economic and trade relations with many countries. But those with India are unique and deeply rooted.

Over the course of the 19th century and until the mid of the 20th, India was the Gulf states’ gateway to the world since it was a hub for Gulf pearls as well as being the largest supplier of services and goods to the Gulf markets.

Moreover, Indian traders and professionals enjoyed a good reputation in the Gulf. When we were children, in our innocence, we thought all the world’s doctors, nurses and traders were Indian. Not surprisingly, their names are still in our minds.

The recent visit of His Highness Shaikh Mohammad Bin Zayed Al Nahyan, Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces, will build on — and add a further dimension to — the relationship.

During his visit, many agreements were signed and a number of facilities were provided that would be in the interests of both sides to increase trade exchanges and boost economic cooperation. The UAE has made a decisive move to establish a strategic partnership with one of the world’s emerging powers.

The UAE-Indian ties have witnessed rapid growth over recent years, so much so India is the largest trading partner while the UAE is India’s third ranked partner after China and the US.

In this regard, Shaikh Mohammad’s visit is expected to develop relations in all sectors. The trade exchange between the two countries increased to $60 billion in 2015 of which $12.5 billion were UAE’s exports, and is expected to hit $100 billion in 2020 in the light of the recent developments between the two. (The UAE’s trade volumes with India did not exceed $180 million in 1971.)

Consequently, the UAE-Indian relations will step up to a new level that reflects the importance of both countries in global economic alliances.

Most interestingly, the foundations needed to bring about this quantum leap were already there. India has become one of the significant importers of the UAE’s petroleum, petrochemical and aluminium products.

In addition, Shaikh Mohammad inaugurated a new wharf for the DP World at the Jawaharlal Nehru port, which would facilitate the flow of goods. Currently, the UAE ranks 10th among the foreign investors in India with an investment volume of $3 billion.

Furthermore, a total of 50,000 Indian companies are operating in the UAE, which led India to the third place among foreign investors in the UAE.

Nowadays, about 2.6 million Indians are working in the UAE. They remitted around $15 billion during 2015, which highlights the importance of the UAE-India ties.

Shaikh Mohammad’s visit focused on the development of these relations to a level where they can keep pace with the rapid technological changes being brought about in the production of services, goods and e-commerce.

It also highlighted the importance of developing investments in innovation and other sectors, especially within small and medium business space that attracts a sizeable section of the workforce. These are in line with the UAE’s strategic approaches as elaborated in the latest ministerial changes.

As such, strategic approaches need efforts from both governments and its peoples. Investors and businessmen from both countries took part in the talks held during Shaikh Mohammad’s visit to ensure a proper coverage of different economic sectors and establishing partnerships.

Currently, the UAE with its developed infrastructure is considered as ideal for Indian exports, while India in turn is now a significant outlet for UAE products, especially oil, petrochemicals and aluminium.

Consequently, both sides will drive benefits and these can serve as a role model for the region and the world.

Dr Mohammad Al Asoomi is a UAE economic expert and specialist in economic and social development in the UAE and the GCC countries.